Taxes when buying from the USA

[ex brickie]

Can someone explain to me what you have to pay if buying Hifi components from the USA? I’ve read the Govt website and I’m still confused……

If you buy something worth say £500 equivalent then do you pay import changes AND VAT? If so at what % rates? Then what is the post office handling fee?

There is more choice of some stuff in the US and cheaper prices - but if there are TWO taxes plus postage it won’t be cost effective. I’ve bought from the US before with (I think) only import duty and a Post Office handling fee but this was when the exchange rate was amazing ……

 

[flutteringwow]

Add 25% to cost of item and shipping charge and you won't be far out.

(VAT, duty(if applicable) and courier/post office handling charge)

Or ask the seller to declare at a lower value, depends how your morals are obviously and your fear of legalities. Also if you declare low, the item will only be insured to the declaration value, if you opt for insurance.

I always ask for lower declarations personally. DHL are the best courier to use when doing this. You can book through Transglobal Express and get good rates and declare what value you want. Unlike say the US who get a huge 'tax free' allowance on products being brought in (something like $700) we only get $15 tax free, and I think, since Brexit they have removed that also.

The handling fees are what the carrier charges to do all the paperwork, pay customs and have your parcel cleared. Tbh, imo, its just a racket, as a courier company this should be part of the job description anyway.

If you're buying from an eBay seller who uses the Global Shipping Programme, they will add on all the duties etc at checkout and you'll pay full whack.

 

[ex brickie]

Thanks - so the combination of VAT/duty from the USA isn’t hugely different from the VaT rate of 20% from Europe?

I assume Canada would be same as USA then - albeit different currency exchange ?

 

[flutteringwow]

Thanks - so the combination of VAT/duty from the USA isn’t hugely different from the VaT rate of 20% from Europe?

I assume Canada would be same as USA then - albeit different currency exchange ?

The UK VAT rate stays the same wherever you buy from, its the UK rate, not anyone else's. Duty rates may vary, and it also depends on the product and the cost, you may not experience any depending on what it is and the price.

Currency rates will of course be different.

 

[ntom]

Dont forget postage cost & insurance are added to the price of goods before VAT is calculated i.e. you pay VAT on the shipping expense too.

One of the changes that came in at the same time as Brexit is that ALL imports attract VAT and duty regardless of cost. Low Value Consignment Relief no longer exists (which used to mean no vat / duty on anything less than £15).

 

[rag987]

For completeness, if your item plus shipping is worth £135 or less you do not pay duty only VAT at 20%. Some items from amazon.com attract very low shipping and they organise payment of import taxes, thus avoiding having to pay the handling fees. I think eBay also have a similar scheme.

 

[Darren L]

I don't know if it's the same for all goods but where motor vehicles are concerned the duty is much lower on a classic model than a newer model, I bought a bike with a 1950 title a few years back, import duty was charged at 5%. I also bought numerous parts for bikes sometimes they arrived without any charges at all, sometimes I had to pay the duties, VAT and handling fees, it seemed to be very hit or miss.